M&A Firm Says Mortgage Companies Undervalued

A New York-based merger and acquisitions advisory firm is claiming mortgage companies for sale are undervalued.The chairman and chief executive of RJ Easton, Richard Easton said, "Several privately held mortgage companies are available for acquisition at two to three times their lowest earning before taxes. Compared with like companies that sold during the boom years at five to six times their highest EBT, today's privately held mortgage companies are a bargain at one-third the purchase price. We see the opportunity to acquire healthy mortgage companies now at bargain basement prices." Recently his firm was the advisor for Bay Capital Corp., an Owings Mills, Md.-based retailer and wholesaler that was acquired by Clear Choice Financial, a publicly traded company headquartered in Tempe, Ariz. RJ Easton was an investor in this transaction.